QA sessions at UNFCCC SB 26 8 May

Q&A sessions at UNFCCC SB 26 8 May 2007 Mr. Hans Jürgen Stehr Chair of the CDM Executive Board Rajesh Kumar Sethi Vice-Chair of the CDM Executive Board

Status of the CDM | To date: 655 registered CDM projects 900 million CERs expected to the end of 2012 Measuring success In pipeline: > 1, 600 projects > 1. 9 billion CERs expected to the end of 2012 (assumption: no extension of crediting periods) Status: 8 May 2007 Map and statistics accessible from http: //cdm. unfccc. int/

Status of the CDM |Measuring success An explosion of activities Status: 8 May 2007

Status of the CDM | Measuring success Region KP parties Parties with DNA Parties with project experience Parties with registered projects Annex 1 parties (AI) 37 24 n/a 14 NAI-Africa (NAI-AFR) 44 31 11 6 NAI-Asia and the Pacific (NAI-ASP) 49 33 24 19 NAI-Latin America and the Caribbean (NAI-LAC) 32 26 19 16 NAI-Other 7 8 3 3 *number of parties with project experience can not be calculated due to lack of information Status: 8 May 2007

Status of the CDM | Measuring success Sub regional: Charts look the same! Region Africa Asia and the Pacific Other Latin America and the Caribbean Status: 8 May 2007 Number of projects 17 377 6 255

Status of the CDM | Measuring success

Status of the CDM | Measuring success Methodology development November 2006 (CMP. 2 Nairobi) May 2007 (SB 26) AMs 38 (plus 20 for SSC) 45 (plus 23 for SSC) ACMs 10 10 A/R 4 (plus 1 for AR SSC) 7 (plus 1 for SSC AR) Tools 3 5 (plus 2 for AR)

Status of the CDM | Measuring success • Processes / Procedures – defined / open to optimisation • Methodology standard: – Number increasing / consolidation / generic tools – Process being optimised and shortened • Register: – 655 registered projects – 14 rejected ( a bit more than 2. 5%) • “Central bank”: – 44 million CERs for a bit more than 230 requests, – 3 rejected (less than 1. 5%) • Accreditation body: Opportunity for single accreditation recognized in all Parties to KP.

Status of CDM | Measuring success • The only regulated mechanism that is up and running, that ensures “real, measurable emission reductions that are additional to what would have occurred without the project. ” • Transparency: - All information is public - Public comments are sought • Close to the market stakeholders: – bottom up approach – Increasing interaction/constructive dialogue • Evolving with experience

Status of CDM | Measuring success • Stimulating investment flow (>19 billion by 2012 (10 USD) in value of the CO 2 eq. reduction only) to non-Annex I countries • Giving Annex I countries flexibility in how they meet their KP commitments (presently pipeline of the magnitude of the annual emissions of Russia). • It is growing even in a context of perceived medium and long-term uncertainties

Status of CDM | Key challenges CDM works, now let’s focus on: • Continuously increasing its efficiency: – Further information access, e. g. CDM Bazaar – Further access to decisions, e. g. catalogue of decisions – Further interaction with “players” , e. g. fora (DOE, DNA), project participants • Realizing its potential (scaling up) – Programme of activities (POA) – Sectors: energy efficiency / transport – Methodologies: simplicity, applicability – Regional opportunities • Regulatory optimization : relatively slim / streamlining and optimization opportunities have and will be pursued • EB to report to CMP 3 its ability to deal with its “success”

Status of CMP mandated tasks| Overview of status Finalize guidance relating to the definition of project activities under a programme of activities and procedures for registration as a single CDM project activity. - Po. A definitions and guidance adopted at EB 28 (Annex 15). - A refined guidance, registration/issuance processes and forms (PDDs) ready for approval at EB 32 Improved “tool for the demonstration and assessment of additionality” Approved EB 30 (Annex 5) New procedures to demonstrate the eligibility of lands for A/R project activities under the CDM. First call for input closed. A Draft text available for further public inputs. Simplified methodology for small-scale project activities that propose the switch from nonrenewable to renewable biomass (1/CMP. 2) - Public call launched, - UNFCCC Side event scheduled at SBSTA 26 - Consideration EB 32 Catalogue of decisions publicly available towards Test catalogue for trial made the end of the first quarter of 2007. available in April 2007

Status of CMP mandated tasks| Overview of status Methodologies for Transport sector and EE methodologies AM 0031 Transport Methodology Regional Distribution of CDM -Nairobi Framework (DNA Forum in Africa) AM 0046 Methodology for efficient light bulbs. Provides framework for other similar small efficiency energy appliances. -Ensure suitability of methodologies in all regions - CDM BAZAAR Accreditation - Secretariat requested to prepare background document on the development of EB validation and verification guidance document

Thank You! Catalogue test address: http: //test. cdmis. net/catalogue-test Information cdm. unfccc. int Cdm-info@unfccc. int United Nations Framework Convention on Climate Change

Related events during SB 26| Tuesday, 15 May, 13: 00 Side Event: CDM programme of activities Wednesday, 16 May, 13: 00 Side Event: CDM: methodologies for SSC projects that switch from nonrenewable biomass